China is due to sign a deal with Afghanistan on Wednesday, paving the way for the first foreign company to produce oil in the country.
China's state owned National Petroleum Corporation will sign a contract allowing it to conduct explorations in an area thought to hold over 87 billion barrels of oil.
"The Afghan cabinet has ordered mines minister Wahidullah Shahrani to sign an oil exploration contract for Amu Darya with China National Petroleum Corporation," Afghanistan president's office said in a statement.
The statement further said 70% of the profits will be paid to the Afghan government.
The deal would be China's second major contract in Afghanistan, after a contract was signed in 2008 to develop a large copper mine in the Logar province.
Beijing's $3.5 billion investment is the largest foreign investment in Afghanistan so far.
Read more:
China begins scramble for Afghanistan's oil reserves (The Daily Telegraph)
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